Women’s fashion brand Charlotte Russe voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Charlotte Russe intends to use these proceedings to facilitate an orderly wind-down of a group of approximately 94 of its store locations, while continuing to pursue a going-concern sale of the business and assets.
Charlotte Russe and Peek stores and online platforms are currently open and will continue to serve customers. The company will provide more details about the plans for the closing locations of Charlotte Russe and Peek and their store closing sales in the near term.
The company received a commitment for debtor-in-possession financing in the maximum amount of $50 million. If approved by the Bankruptcy Court, the financing will support its operations and administration during the Chapter 11 proceedings.
According to the related court filings, Bank of America will serve as agent for the DIP lenders.
Charlotte Russe also filed a number of customary motions with the court seeking authorization to operate its business in the ordinary course during the Chapter 11 proceedings, including, without limitation, authority to continue payment of employee wages and benefits, and amounts due to shippers and warehousemen, utility service providers and taxing authorities. The company would additionally like to continue to honor certain customer programs.
Cooley is serving as Charlotte Russe’s legal counsel, Berkeley Research Group as its financial advisor and Guggenheim Securities as its investment banker.
Charlotte Russe is a fashion brand for young women, which offers on-trend apparel, shoes and accessories for all sizes. It operates in the contiguous 48 states, Hawaii and Puerto Rico through their online store and mobile app, as well as over 500 brick-and-mortar stores located primarily in malls and outlet centers. The company also operates the Peek Kids brand.